Spain's BBVA Warns of EUR35 Million Cut in June Profit on Mortgage Ruling
June 12 2013 - 3:49PM
Dow Jones News
Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) said
Wednesday that a change in its mortgage structure contracts will
have an adverse impact on its June net profit.
In a filing to the Spanish stock market regulator, Spain's
second-largest bank by market capitalization said its net profit in
June will be reduced by 35 million euros ($46.7 million) after
Spain's Supreme Court banned banks from overcharging consumers on
variable mortgage rates when the Euribor benchmark interest rate
dropped below a floor rate set by the banks.
BBVA said it will cease to include the clause of setting a
minimum interest rate in its mortgage contracts, retroactively from
May 9, which is the date when the court ruling was released.
The bank added that the impact on coming months will be
determined by the performance of the one-year Euribor rate.
Regulator website: www.cnmv.es
Write to Enza Tedesco at enza.tedesco@dowjones.com
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